Energy Audits- FAQ: What Federal Tax Incentives Are Available?

Federal tax credits may be available for for thirty percent (30%) for the cost of residential energy efficiency improvements in an

amount up to $1,500. Qualifying improvements must made during the period of January 1, 2009 through December 31, 2010.

The qualifying improvements vary as to whether only materials, or materials and installation costs are included: The tax credit for

HVAC, biomass stoves, and non-solar water heaters is 30% of the total cost (product + installation) up to $1,500. The law specifies

installation costs include: "expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the

property." The tax credit for windows, doors, insulation and roofs is for 30% of the cost of materials only, up to $1,500.* 

*(Note- Whether a specific deduction is available to you and how it impacts your overall tax situation is something that is best left to

discussion with your CPA or other tax advisers.)